Riyadh – Mubasher: Tabuk Agricultural Development Company reported an increase in net losses in 2019 by 186.68%, as shown by the company’s annual financial results for 2019.

The annual net loss after zakat and tax amounted to SAR 179.77 million last year, compared with SAR 62.71 million in 2018, according to a statement to the Saudi Stock Exchange (Tadawul).

The company attributed the increase in losses to a difference in the value of inventory, current assets, reevaluation results, and recording provisions for a decline in capital projects.

Moreover, the increase in losses was also due to recording losses in subsidiaries and associate companies, as well as investments in equity instruments, higher finance costs and administrative expenses, and lower sales volume.

The company appointed Wasatah Capital as a financial advisor for its capital hike through a rights issue.

The OGM of Tabuk Agricultural recently approved the board’s proposed capital cut by 46.27% to amortise accumulated losses of SAR 208.23 million.

Accordingly, the Saudi firm’s capital will be reduced to SAR 241.77 million from SAR 450 million, while the total number of shares will reach 24.17 million compared to a current 45 million.